Hungary Set to Repeal Its New Law On Central Bank

The Hungarian Foreign Minister Janos Martonyi spoke about repealing the law it recently introduced on its Central Bank as it bowed to pressure. Its bond yields have risen significantly, currency has collapsed and CDSs have surged to new records. As Hungary positions itself for a bailout it is open to negotiations on the new law which it brought in to have more control over its Central Bank.

Reuters reported

“Hungary’s government is ready to consider modifying disputed legislation if the European Commission deems it necessary, Foreign Minister Janos Martonyi told the bloc’s executive and European Union partners. “We fully respect the authority of the European Commission, the guardian of the EU treaties,”

Hungary, which wants to secure a multibillion euro financing deal with the International Monetary Fund and the European Union, is locked in a legal dispute with the European Central Bank and Brussels over a new central bank law.

The European Commission last month asked for the law, which it worried will compromise the bank’s independence, to be repealed.

Martonyi said the government was ready to conduct dialogue with anyone who raised concrete concerns.